WellPoint Lifts 2014 Earnings Outlook - Update

(RTTNews) - Health insurer WellPoint, Inc. (WLP) Friday lifted its earnings per share outlook for full year 2014, citing solid growth in membership, revenue and operating earnings.

For 2014, the company now expects earnings per share to be greater than $8.20, driven by growth of 1 to 1.3 million net new medical members and mid-single digit percent increases in both operating revenue and operating gain.

Operating revenue for 2014 is still expected to be $73.0 billion, up 4 percent from last year.

Earlier, WellPoint forecast 2014 earnings to be above $8.00 per share, on operating revenues of about $73 billion.

On average, 22 analysts polled by Thomson Reuters expect the company to report earnings of $8.38 per share, on revenues of $73.70 billion for 2014. Analysts' estimates typically exclude special items.

For full-year 2013, the company had posted earnings of $8.20 per share, and adjusted earnings of $8.52 per share. Operating revenue was $70.2 billion in 2013.

The company noted that operating revenue for 2014 reflects conversion of 1.1 million New York state account members to a self-funding arrangement. This is expected to unfavorably impact 2014 operating revenue by about $2 billion, the company said.

Operating gain is anticipated to be greater than $4.2 billion, an increase of 5 percent from the prior year. Medical Enrollment at the end of the year 2013 totaled 35,653.

Joseph Swedish, chief executive officer of the company said, "We are building on the positive operating momentum we've achieved across the organization over the last year. While it is early in 2014, we are encouraged by results thus far across our businesses and we believe Exchanges are tracking our general expectations."

The company has provided the financial guidance for the year in conjunction with its Investor Conference taking place in New York City.

"We have entered a period of tremendous change across the health care system and are confident that WellPoint has the leadership, assets and strategy to drive profitable growth over the next several years," said Swedish.

WLP closed Thursday's regular trading at $99.71, up 0.67 percent. In the pre-market activity on Friday, the shares are up 0.69 percent.